Labelling expert Avery Dennison's Q2 sales grow 8% at $2.8bn
27 Jul '05
9 min read
The roll materials business in Asia reported double digit growth in local currency sales, while this business in Latin America grew at a high single digit rate.
Sales in the graphics and reflective materials business declined by approximately 2 percent before the effect of currency.
Excluding restructuring and asset impairment costs, operating margin for the segment increased to 9.4 percent compared with 8.6 percent a year ago, due to productivity improvement initiatives, including a plant closure completed in Europe during the second quarter of 2004, as well as spending controls.
The benefit of price increases covered higher raw material costs.
The Office and Consumer Products segment reported sales of approximately $300 million, an increase of more than 4 percent over the second quarter of 2004. Slightly more than half of the revenue growth for the segment reflects selling price increases. The balance of the sales growth is attributable to the impact of currency translation, primarily the Euro.
The segment benefited from earlier than usual shipment of back-to-school orders. An estimated $10 million in customer orders related to the back-to-school season were shipped earlier than the prior year, shifting an estimated $0.03 of earnings per share from the third quarter into the second.
Excluding restructuring and plant transition costs, operating margin for the segment increased to 17.0 percent compared with 14.1 percent a year ago, reflecting productivity improvement efforts and spending controls. Price increases, effective January 1 of this year, have covered cumulative raw material cost inflation for the segment.
marketing@alchempro.com
